Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Shareholder Meeting (May 2014)
28 slides from Franklin Electric's shareholder meeting presentation, May 2, 2014
Slide 1: Shareowners Meeting May 2014
Shareowners Meeting May 2014
Slide 2: Business Segments
Business Segments Water Systems 79% Fueling Systems 21%
Slide 3: Global Aquifer Map
Global Aquifer Map The World’s aquifers contain 50 times as much fresh water as all the World’s lakes, ponds, rivers, and streams combined.
Slide 4: 2013 Water Systems Sales
2013 Water Systems Sales United States 46% Developed Non-US 16% Developing Regions 38% 2009-13 Developed World CAGR 13.4% 2009-13 Developing World CAGR 23.9%
Slide 5: Global Expansion — Distribution
Global Expansion — Distribution
Slide 6: Global Expansion – Platform Acquisitions
Global Expansion – Platform Acquisitions $23.6 $33.3 $20.0 Year Prior to Acquisition (at 2013 FX) $41.2 $72.6 $37.2 2013
Slide 7: 2013 Water Systems Sales
2013 Water Systems Sales Groundwater Pumping Systems 61% Surface Pumps 39%
Slide 8: 2013 Water Systems Sales
2013 Water Systems Sales Irrigation & Industrial Groundwater Pumping Systems 26% Residential Groundwater Pumping Systems 35% Residential Surface Pumps 19% Irrigation & Industrial Surface Pumps 20%
Slide 9: 2013 Water Systems Sales
2013 Water Systems Sales Irrigation & Industrial Groundwater Pumping Systems 26% Residential Groundwater Pumping Systems 35% Residential Surface Pumps 19% Irrigation & Industrial Surface Pumps 20% #2 Global Supplier to residential water pu ping systems distribution channel #1 Global supplier to agri
Slide 10: Product Development Process
Product Development Process CONCEPT MODELING SIMULATION 200 250 300 350 0 500 1000 H ea d (Ft ) Flow (GPM RESULTS TESTING PROTOTYPE OPTIMIZE GEOMETRY
Slide 11: 2013 Water Systems Sales
Irrigation & Industrial Groundwater Pumping Systems 26% Residential Groundwater Pumping Systems 35% Residential Surface Pumps 19% Irrigation & Industrial Surface Pumps 20% 2013 Water Systems Sales
Slide 12: Water Systems – Drives & Controls
Water Systems – Drives & Controls • Leading supplier of drives and controls for low horsepower groundwater pumping applications • Cerus acquisition (FCS) – technology leader in higher horsepower fluid transfer applications • Sell FCS drives and controls with Franklin high horsepower pumps and motors
Slide 13: Water Systems – High Efficiency
Present Motor Eff. Water Systems – High Efficiency New 6” Motor – Unique High Efficiency Design
Slide 14: Water Systems – Solar
Water Systems – Solar
Slide 15: Water Systems – Solar
Water Systems – Solar
Slide 16: Oil and Gas Deliquification
Oil and Gas Deliquification
Slide 17: Drives – HVAC Market
Drives – HVAC Market
Slide 18: Pioneer Pump Rental in UK
Pioneer Pump Rental in UK • Opened first branch – Q2, 2013 • Acquired small competitor – Q3, 2013 • Breakeven – Q1, 2014
Slide 19: Fuel Management Systems
Fuel Management Systems #2 Global Supplier Vapor Recovery Systems #1 Global Supplier Piping & Containment Systems #1 Global Supplier Pumping Systems #1 Global Supplier Fueling Systems
Slide 20: 2013 Fueling Systems Sales
2013 Fueling Systems Sales United States 52% Developed Non-US 17% Developing Regions 31% 2009-13 Developed World CAGR 8.6% 2009-13 Developing World CAGR 26.4%
Slide 21: Fueling Systems – Inorganic Growth
Fueling Systems – Inorganic Growth 2010 Acquisitions 60% Organic 40% GROWTH 2002 2000 2004 2006 2012
Slide 22: Fueling Systems – Global Growth
Fueling Systems – Global Growth North America 2000 2013 20 M 15.2 M 3 M 17.4 M China, India & Latin America 1 Source: Scotiabank Group Global Auto Report New Passenger Vehicle Sales(1) Up 5.8X
Slide 23: Fueling Systems – Global Growth
Fueling Systems – Global Growth(1) United States Rest of World Number of Stations 175,000 550,000 Stations with pressure pumping technology 97% 23% Stations with vapor recovery systems(2) 95% 17% Stations with fuel management systems 75% 35% Stations with flexible piping 45% 35% 1 Franklin managemen
Slide 24: Fueling Systems – New Products
Fueling Systems – New Products
Slide 25: Fueling Systems – New Product Development
Fueling Systems – New Product Development • Inventory management • Leak detection • Inventory measurement • Fraud prevention • Low-cost Addressing the Needs of both Developed and Developing Markets
Slide 26: Fueling Systems – New Product Development
Fueling Systems – New Product Development Addressing the Needs of both Developed and Developing Markets
Slide 27: Acquisitions
Acquisitions • Fragmented Global Markets – Bolt-on Acquisition Opportunities • Franklin Acquisition Profile (Past 10 Years) – Acquisitions per Year – 1-2 – Purchase Price – $1-125 M (Ave. $50 M) – Average EBITDA Multiple – 7.5 X
Slide 28: Franklin Electric
@ Franklin Electric